>> valero. >> the fundamentals hold up. >> i am going to stick with mills. with venmo

they keep doubling down. today the hard open. lower prices. then we had a sharp rally off the lows. a slow down in china.

both positive. nothing negative. this morning we go to the numbers on the street. this strangles the living daylights out of the economy. why because china is pretty much all rural goods. we need them to order. we need their government to tap out of resources. trying to keep this real estate market afloat. you better pray the chinese economy stays stagnant. how could the market be so stupid as to sell off the news this morning? simple. every point since the bottom mid june, bears don't know how to quit. let's not forget unlike europe, it's the chinese economy. it's a bank over there. never worried about china

causing global devastation. because the government can and will resuscitate the economy at gunpoint. with that in mind, let's turn to the game plan rest of the week. normally i like to go watch. they start saying one day which is very good place to start. kind of like music. jumping right to wednesday because that's when we get the ten minutes. they're going to tell us whether feds flatten us with hikes or just do 50 points. now they have two triple rate whammies in a row. keep n mind, these are from late july. it wasn't as obvious as peak. peak doesn't mean down. it means peak. i need to address the housing

start figures coming out tomorrow morning. these are significant. we need a huge number of housing starts. best way to solve is overbuilding. not if you're a home builder. this is an inventory session. you can't see homes roll back as they compete for the same customer. those numbers today. we had a two year real estate boom. it's almost overbuilding what jay powell is down. wednesday morning, we get retail sales and soon it's important. we've got do find out. we have to see the end of aggressive bargaining. only way inflation can keep coming down is stop the endless buy by the consumer. that's it. as usual, we'll get our best intel from individual

companies about the buy. i always like the earliest progression. we have wal-mart and home depot followed by target and lowes on wednesday. for the longest time, home depot was better than lowe's and wal-mart better than target. lowe's is better for do-it yourselfers. contractors are doing much better at this point. as for target versus wal-mart, target is doing better. they have inventory charges in june then moved on. wal-mart is taking two charges of inventory and may still be stuck. i don't know. i don't think i'd want to be in either one. we solved this dilemma on behalf of retail stores. costco and amazon instead. that's very tough for retail u.

aside from exceptional situations, got to steer clear at this point. the book says when ever the hedge fund says do not buy retail going into a recession. lots of stuff here. they seem to have good insight in europe where they're big. perhaps wait until reports wednesday morning. then do some buys. tgis makes out like a bandit when normal retailers duck their excess inventory like they're doing now. we get to hear from analog device which is a fantastic company.

i like this one. their chips are in demand. we own the system travel trust which you can follow. we're waiting for orders to produce upside after last quarters. cisco is so cheap. there's a ton of data. we set the stock anything good at all. i'm betting that stock holding here because of that powerful yield. thursday represents the best. we get to hear from khols. that's a disappointer. and estee lauder. they dropped the ball last time because of china. the now this time we got to find out if they're going to find the highest end fashion company. it would be a big change in strategy for the skin care company. i'm not sure necessarily i would like these. then again, prices have been.

i can't wait to hear what he has to say thursday night. at the premiere equipment maker, we want to make sure customers are trying to solve the chip shortage sooner than later. i'm hoping it's sooner. we need the chips. on friday, the report davidson today put out research suggesting maybe even more. supply chain problems. aren't you tired of hearing that. we'll be haunted by price increases. this will push the fed in the direction we don't want. we don't want the fed to raise the rates. we don't want them to keep raising hard and fast. we have foot locker which use to be important indicator of how it's going. now i think foot locker falling out of favor with nike. this is an indicator.

here's the bottom line. this is referendum on the consumer. please don't make it on china which means nothing or oil mostly about russia and nothing more. let's start with questions with chris. >> hey, jim. i own chevron stock and have two questions. >> do you think i should hold, sale, buy additional stocks? >> we have the white chevron, cut it. i think oil hangs right here makes it a stab at 100 and perfect for chevron. this week is a referendum. mostly about russia, nothing more. tonight, getting images that soared this public back. what does the company have to do to make this go

higher? i'm not sure. i'm thinking of the details. the market begins to favor tech stocks. any big names that keep running the rest of the year? i'm going off the charts to find out. i didn't know the name. see if either provides an enticing buy option. stay with cramer. >> don't miss a second of mad money. follow@jim cramer. send jim an email to mad money@cnbc.com. give us a call 180-0743cnbc.

head to mad money.cnbc.com. (vo) hi. we're visible. a different kind of wireless company... ...running on a big impressive wireless network. how are we different? we exist only on your phone. which means you sign up, get help, and pay all right here. so you get a single-line unlimited plan for as low as $25/mo. switch today at visible dot com.

in order for small businesses to thrive, they need to be smart. efficient. agile. and that's never been more important than it is right now. so for a limited time, comcast business is introducing small business savings. call now to get powerful internet for just 39 dollars a month. with no contract. and a money back guarantee.

all on the largest, fastest reliable network. from the company that powers more businesses than anyone else. call and start saving today. comcast business. powering possibilities.

getting images from the opening bell. this is a good time to highlight what's going on. i can remember the last time a stock company was traded before taken privately. so late last year, we learned it was public again. this time via spat. this is where the rare spat stories is quality business just days after, back in july this time, that includes 149% gain in a single day. i point out and cash out and

falls by 90% the next training day. next couple weeks training sideways. 10% today after they rang the opening bell. this is a stark conscious to other stories. is that getting. what the heck is going on here? what do we do at this point? okay, first, let me say i like the company even as the stocks are. you don't get images as to leading global suppliers. it seems like everything you see on the internet is licensed. they've got a mattive library. this is an amazing step. more than a billion times per day. they have tons of deo content. if you wit, you have good

like the other guys. there's a an this has a long history. originally it was one of the first internet places. it was public 1996. this was worth 2000. then taken privately $2.4 billion. increase competition also answering questions. that happened a couple years earlier. the price might have been closer to $5 billion. since then, this thing has been traded by private equity firms. in 2018, this inside the stake, back to the company. that's when the cofounder mark yeti took over chairman bringing in peters ceo. last deputy, we learned the images would be returning by merging with a

spat. that's a mouthful. the company 4.8 million. the next several months, stock trades sideways which is normal for these things. you expect these rather than taking shares with you in it. today higher average. what is it like 22nd. rising under $10 in the first couple days. marked un$30 today. how the do we display? the stocks exploded higher july 29th and spent the next couple days. it has to do with sec. this was an 8k that had the redemption process. turns out they redeem their shares for cash rather than taking shares with new images.

99.4%. normally stock prices because it means the new company doesn't get to raise as much as they want. getty raised $360 million for private investment and private equity offerings on the side. the spat was sitting on $830 million. they're only getting $5 million of that. you think that would be bad news, right? here's the thing. when 70% of your investors take cash rather than shares in the company, that hurts the company. when 99% choose the cash like we saw with yeti, that sets up conditions for a massive short squeeze. there's not enough stock going around. there's roughly 319 million shares. not bad. the vast majority are owned by insiders like investors which took a 20% stake. they're in fact, july 28th when

we got this news, there's a good chance the private investors that shelled out 360 million hadn't even gotten their shares yet. that means the only shares out there were the fact shares. by that point, there were only a half million of those left to trade. half million. >> some savvy investors saw what was going on and decided to engineer a squeeze. july 29, 13 million squares which is a huge buy in for a half million. no wonder it jumped since then. after taking a breather better part of two weeks, the squeeze is going on. it rallied 10% today. there aren't enough out there. they're kicking themselves now. look at this. unfortunately this ridiculous rally made it tough to get here. so instead of justifying the

stock up here with $10.8 billion market cap, i expect the stock to come in as remaining investor. honestly, it's a shame the way this played out. it's a real business and real earnings. i think the price is insane. last week, the first quarter since the public market. however the one covers the stock, only one. he was not thrilled. he had to downgrade the stock. that's my feeling too. it proves here's the bottom line. as much as i like getty images, you have to stay away from any post back stock that explodes higher. the history of these things is real ugly as they come back to earth. they're in a sword squeeze. there's not enough supply to

stay away. >> mad money is back in a minute. >> coming up, microsoft, tesla, the charge may tell the tale of three mega names. cramer has the story next. >> on the go wherever you get your podcast. >> the investing club is a dream for me. perhaps the most exciting part of the dream is morning meeting. jeff and i gives you a real look at what's happening in real time. this is at 10:20. i love it. why? it is unrestrained and unplugged. this is what you need to know. ten minutes you give us ten minutes. we'll give you everything we know about the market. >> never miss an manslaughterment club meeting. scan the code and become a

member today.

now that inflation maybe peaked, high quality edge stocks that got slammed earlier this year. now it's rebounded hard from lows over the last couple of months. tonight we're calling off the charges.

or on twitter as queen in order to take a closer look at extremely high profile names we know you care about passionately. those three are aping, microsoft, tesla. all three have been since mid june. the bottom is the first half of the year. can they keep running? >> she wants to see a bowlish pattern. she wants the five day and 13 day average when five day goes above the 13 day. that's her favorite time pull the trigger. since june, both patterns spotted in apple, tesla. can you imagine the higher highs and higher lows along with the five day and 13

cross over. what incredible moments. however, they've already had these rallies. the question is whether stocks have run out of juice or is it too late. you know my favorite. many other stocks by the way. apple's rallied more than 44 bucks. not a good sign. it's very similar to a fire rally. apple gained $44.67 before. $44.67, $44.66. pretty similar. you know what, always looking for patterns based on past swings and stocks. i can't tell you why. it definitely happens here. she says the last rally creating the resistance here at 173. again, she looks at this and matches it with that. says this isn't going to go further than this time.

we are resistant. >> however, if the stock is less than a dollar from here and stay up, he could easily see it $197.60. the team levels of starting to exhaust itself. that's how she gets to $197 price charge. i'll take it. this applies the same set down here's trajectory has been strong. that's not a real thing. i think you should own it not

trade it. always reversal. it happens often enough it's worth watching. if it can make it this week, then the longer term outlook. here's another formally beaten down stock. like apple, tesla is showing resistance levels. it's interesting how important this week is. it needs to clear levels >> so it might not be easy for tesla to keep climbing. stock you push between the ceilings. then you see it making a run toward a long term

target $1412. more than $100. that would be incredible. let's zoom in so you can learn more about this. the stocks continue to hold above last week's flows. $838. she can see it headed to $968. up $40 from where it's currently trading. takes like a day's worth. last week's low around a couple projections. she thinks it will hold. remember that's when elon musk sold stocks in order to maybe get ready to pay for a twitter deal. i think the chance to report will force him to do so. that's been wrap since day one. even if he has to do more let's talk about stocks that i don't talk about enough home for the trust. i know that's not what she's

talking about. take a look at this. this pattern of higher highs and higher lows. but this is a big but. he points out microsoft $300. last night at this point you >> now he says these levels often have levels of support or resistance. microsoft now nice floor underneath it. this is really a crucial level. they're worried about that last quarter. you know what, that proved to be a nonevent. you can see stocks coming up against a series here including the 300 level as i

mentioned and 310. it ends up being much easier for microsoft to make a run to our long term target around. you bet you ski daddy. $379. while apple, microsoft, tesla have hurdles to jump. >> however, as the week gets so bad the five day average goes back below the 13 day. she says all bets are off. bye, bye, bye. at least they're charged long term. i think she's got a point. i want to speak to barbara. >> hi, jim. thank you for taking my call.

>> my pleasure. >> i have a question regarding the 3m merger supposed to be completed by august 30th. >> i have to reling quick. there's a page single space document. >> i'm sorry. let's do this. i'm not a fan of 3m stock unhere. there's too many question marks. if you sold 3m, that wouldn't be so bad. i like the company long term. i am very concerned about the near term because of a lot of litigation. that's my worry. let's go to lucas in minnesota. >> please mr. cramer. >> fantastic. i love it. >> i'm glad you guys on the morning show are giving

us a way through the clutter to find good businesses that are making money. maybe even throwing an occasional -- oh shoot . sorry. occasional good investment. here we go. sorry. >> we do our best. what's up? >> just wanted to - >> then the stocks didn't go down. that tells me ever closer to a bottom you should be owning clorox. it's the absence of stocks apple, tesla and microsoft could face short term backs. i'm turning my homer share what i should have known when you called me. how can inflation come down

from here. >> tonight is the lightning round. stay with cramer. >>y diminish wrinkled skin in just two days. new crepe corrector lotion only from gold bond. champion your skin. >> why not both? visibly diminished wrinkled skin. new lotion only from gold bond. champion your skin. >> everyday, big decisions are made without full information. overloaded by data. come pounded by complexity. better decisions are made in

life. power e*trade's award-winning trading app with clarity and confidence. make complex trading less complicated. custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the market. >> ebd tools come like a training less complicated. custom pan. for as low as $25/mo. switch today at visible dot com. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

matching your job description. visit indeed.com/hire if you wake up thinking about the market and want to ght moves . get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity. non-gaming tribes have been left in the dust. wealthy tribes with big casinos make billions, while small tribes struggle in poverty. prop 27 is a game changer. 27 taxes and regulates online sports betting to fund permanent solution to homelessness. while helping every tribe in california. so who's attacking prop 27? wealthy casino tribes who want all the money for themselves support small tribes, address homelessness. vote yes on 27.

we have got a beautiful new set here. this is still the same old man. that includes following up when ever i get a call by the stocks. we have to recognize or simply give a considerate opinion. now we've had a couple from the past week. it is unbelievable. we want to be rigorous

thinkers. first, harry just a great call because my father worked for this company. she asked about the new area. watching just the company is just reported that night. they were still waiting. i can't wing things. for those of you that don't know the building materials company. this is not some small time. this is a fortunate 500 company that generates $8 billion in revenue last year. there's the larger building materials distribution business. it makes up 78% of the sales. they carry everything from siding, decking, metal insulations. then rest of this is making wood products think of lumber. again you go. this is the top long term

performer. $21 to low as 70-cents. we have a lot of stocks inside. not nearly as well. when covid transformed the way we live creating huge demand for larger places in suburbs. housing was a lot especially wood. stocks rallied 35% in 2020. that's another 61% last year alone. even though the federal reserve is spending on the economy, it will show up 3% for the year. what more can you ask. however, it did peak. peaked in early june. like a lot of stocks. take a look. midweek of june, we saw big

reversal markets. it came down hard over the next couple weeks. spent the last couple months recovering. as i see it, that's why the stocks are so strong last year. i also worry. i'm worried about right now. these guys make fortunes demand for housing that went nuts. we had all kinds of shortages in building materials. unfortunately the business cycle. high and low prices and high mortgage rates, home buyers disappeared. cancellations were all over the place which is why the stock was much more above battlegrounds. the price of lumber has been crushed over the last couple months. that's it. the home builders are the steal makers. it's a comically low evaluation. i always tell you about

multiples. this one trades less than four times this year's earnings deficit. of course that's only the case because they're expected to raise the glass. this is four times earning spot. now there's nobody keeping it's off as the economy goes into a recession. makes sense. this is not a stupid pummel taking 4% in the recession. they also make comments about their outlook that's completely freaking people out. for example, they learned super friendly housing year to year starting in june. they said we've spent the pace to slow due to home affordability and weak economy. they also said they expect

prices to be, quote, volatile and response to economic uncertainties. i've said this before. when you hear that word volatile, it's a word you never want to hear. prices are going down. in june, the market was trading like we were headed toward a recession they might not have to squeeze the living daylights out of the economy. that's good news a55 to 21 it's hard to earn anything

house hold related at this point. at first, i'd be like this. if you want lumber, warehouse is okay for us this is a big company that had the huge group more than doubling. what happened? >> the bio tech now buying $15 per share. a lot of money. the acquired unless there's something unusual going on like a bidding war jacking up the price. give us percentages. the best case scenario, the deal goes through. you lose a fortune if something

goes wrong. we don't play that game. however, i did want to serve back. i think it tells you a lot about what's happy. third best performer in the dow jones industrial is amazing but not that great. i shouldn't have said. it had better times in the past than now. i use their stocks. i think full disclosure, one of their important they're facing from 2025 to 2030 there's one drug on the market. it's only just launched into

prospects anti inflammatory drugs. now rare diseases including ulceritis colitis. that's a big one. thing deal is good news to acquire for mj. i'd love to see them do a series like this. bottom line, don't be tempted by the cheap cascade. it is cheap if the economy stays strong. it's the housing crunch. as for chemo, keep your bag on the shoulder. mad money is back after the break. >> coming up, the sky is the limit. it's a best buyer lightning round.

♪ ♪ ♪ ♪

>> are you ready? how about we start with esreth this california. how you doing? >> hello. tell me about shanu? >> shanu canoe. we're not recommending any less stocks that continue to lose money.

they're not for us. no, no, no way no how. now we're going to zackary in new york. zackary. >> as a small value play, i'm curious as to what you think about energizing holdings. let's go to todd in florida. todd? >> professor cramer. >> yeah. what's up? >> nothing much. >> i've got a small company that has been on slippery slope since the 52 high in november. the 78% heavy you year over year. it's lose on the street if any at all. the company is barricading. >> yeah. i want to see money like water.

we're against that. we are in favor of stocks that do well. we're going to say no. it's a lot of stocks that are bottoms. i have no end point whatsoever. now we're going the to see in washington d.c. >> jim, thank you for the advice. it has been tasty. >> it is tasty. not done. down 3-0 this morning. stop that. stop it. what stocks? >> cbr energy. they also make fertilizer for the american farmer. >> i like this more than i like the business. it turned up. i'm liking that stock. >> all right. we're going to go to north dakota. matthew. cramer, how you doing? i'm in charlotte buying all i can find. >> there you go. it makes sense.

i like the panthers. i'm mad again. >> what i hate is companies that screw up. boeing has gotten it under control. i think it connects. i got tired of the mistakes. ready and that. the conclusion. the lightning round. >> lightning round is sponsored by tb ameritrade. >> today's edition of inflation saga has a little of each. thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience.

with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back. (vo) hi. we're visible. a different kind of wireless company... ...running on a big impressive wireless network. ♪♪♪ how are we different? we exist only on your phone. which means you sign up, get help, and pay all right here. so you get a single-line unlimited plan for as low as $25/mo. switch today at visible dot com.

how can this four week rally keep going? so for stocks to keep on trucking, inflation has to keep going on. that means a handful of different things need to happen. we have to see the auto company. i use to think the auto makers were just. the more i dig in, the more

transition only makes it worse. it's terrific our government because the trip shortage rushed the auto industry. it's going to take years before the facility kicks in. for now, it's a 6 cheap chip made in taiwan. we're not going to switch back to less complicated parts. there's screens, knobs the, dials. sadly that's not bad. >> that's exactly what the reserve is doing. i hate that's how it's going to happen. it has to happen. second. more homes. got to have more homes. the home builders have got to overbuild. that would bring the prices of houses back down.

they might do. that the real estate market got so high, it was like a mad response. we're going to have to see prices come back down meaning a huge fed mandated rise in mortgage rates that makes housing unartable. those rates are up big from six months ago but not enough 46 to reverberate landlords that keep raising rents. i think it's a possibility coming fall. 5.6 mortgage rates today. that's a lot. this hasn't happened yet. 66 early i'm touting this theory, i think the houses are going to cool off. oil needs to stay low. now i like the odds on this. we have russian pumping like what feels like a war. we have china not using as much because their economy is full. we have u.s. pumping 12 million a day. even without demand and

destruction, oil would stay down. throw in a mandate and it goes lower. $80, maybe lower. if we had more refining capacity, we'd have lower prices. we're told the future of this nation is electric vehicles. we need food lower. this has gong in the right direction. may not feel like it this weekend. most are down huge from highs. i wouldn't be surprised to see price wars at the supermarket as big grocery chains push their products. the store brands carry much higher margins than merchandise. that trade is for real. it's going to help keep costs under control. i'm optimistic about food inflation over the next three months. we'll listen to euro friday. this is wages and this is a real toughy. the big processor, it's telling

you that it is incredibly strong. even the irs is tens of thousands of new employees taking them away from the private sector. the only way to stop wage inflation is fed to lower the boom on us with higher rates. i see no ray around that one. the last is the supply chain. this is a problem. businesses are constantly ordering the same thing. road work theme or electric vehicles or something that is the world's second largest economy china plagued by shutdowns. economy needs to slow down to get a breather and fix the mess. the fed is trying to give it to us. slow the economy down. it brings prices down. it's a one two punch that we need really badly. so you put it all together and you can see that while we're at peak inflation, we need the fed to stay tough to get us to a point we're seeing the

deflation. that's the bad news. they've made great stride here. the job market is strong starts now! one week since the fbi's search of mar-a-lago. this is the news on cnbc. the former president claims that his passports were seized. the question he asked the attorney general, and what lawmakers on both sides see from the doj. judges and prosecutors zero in on rudy giuliani. the target of their criminal investigation is an effort to overturn the 2020 election.